Simple interest and the compound bank offers

Assignment Help Financial Management
Reference no: EM131841966

You want to deposit $2,500 now into a savings account for 5 years. The Simple bank offers 9% per year with simple interest and the Compound bank offers 8% per year with monthly compounding. Which bank would you prefer and why?

a. The Simple bank because it offers an additional $121.95 in interest.

b. The Simple bank because it offers an additional $35.66 in interest.

c. The Compound bank because it offers an additional $48.32 in interest.

d. The Compound bank because it offers an additional $99.61 in interest.

Reference no: EM131841966

Questions Cloud

Discuss the federal register and its purpose : Your boss at the local hospital has asked you to be in charge of staying current on the new policies and laws published in the Federal Register.
What are the portfolio rate of return and variance values : A portfolio has 38 percent of its funds invested in Security C and 62 percent invested in Security D. What are the portfolio rate of return and variance values?
What are the forecasting requirement : Hard Wood Coals Jim Jam had been a career policeman for the past 25 years having joined the Police Force immediately upon leaving High School.
What is npv of the project : You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. What is the NPV of the project?
Simple interest and the compound bank offers : The Simple bank offers 9% per year with simple interest and the Compound bank offers 8% per year with monthly compounding.
Identify the greatest challenge or asset : In the book Strategic Vision America and the Crisis of Global Power by Zbigniew Brzezinski, he refers to the list of liabilities and assests on America's.
What is a call option and put option : What is a put option? What is a call option?
What is the delta of the call option : what is the current value of a one-year European call option on XYZ with an exercise price of $12? What is the delta of the call option?
What position should the manager take : What position (long or short) should the manager take? Please explain.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd